Preparation Is Crucial When You’re Learning To Be A Property Sourcer

Being a Property Sourcer can be an exciting and rewarding venture, but success doesn’t come without thorough preparation.

In fact, preparation is often the difference between securing a great deal and facing costly mistakes.

As an investor and property sourcer myself, I typically view many properties before having a single offer accepted. This process may seem time-consuming, but it highlights the importance of due diligence when making such significant financial decisions. Here's why preparation is key and what it entails.

The Importance of Due Diligence

Before stepping into a property viewing, it’s vital to research and assess the property’s potential. Without this groundwork, you could waste valuable time or overlook crucial details. The due diligence I carry out includes the following:

1. Understanding the Property’s Market Value
   Compare the house price to similar properties in good condition within the area. This gives a clear idea of its true value and whether the asking price is reasonable.
2. Evaluating the Layout
   The internal layout can determine the property’s potential for renovation, conversion, or simply its overall appeal to prospective tenants.
3. Estimating Rental Income
   Knowing the expected rental income ensures the property aligns with your financial goals.
4. Identifying Tenant Type
   Understanding who is likely to rent the property helps tailor your approach. For example, a family may prioritise schools, while young professionals may focus on transport links.
5. Proximity to Local Amenities
   Shops, parks, healthcare, and public transport are all critical factors that influence tenant demand.
6. Access to Schools and Education
   If the property is near reputable schools or universities, it could appeal to families or student renters, increasing its rental potential.
7. Exploring Property Strategies
   Each property may suit different strategies, such as buy-to-let, house of multiple occupation (HMO), or flipping. Identifying these options upfront can save you from costly surprises later.
8. Solving Vendor Problems
   When dealing directly with vendors, consider their motivations and whether you can provide a solution to meet their needs. This can make negotiations smoother and more successful.

If You're Acting As A Property Sourcer...

It’s crucial to ensure that as a sourcing agent, you're fully compliant. This means for example :

• Be registered for HMRC Anti-Money Laundering.
• Be a member of an ombudsman scheme for dispute resolution.
• Hold a registration with the ICO (Information Commissioner’s Office) to handle data responsibly.
• Have professional indemnity insurance to protect against any unforeseen issues.

Want to become a property sourcer?

Our Property Sourcing Training can teach you everything you need to know, for a low, low price of just £27 !

Here's the link : Property Sourcing Training